Frequently Asked Questions About Property Investment
Do I Invest in Property or Not?
Property investment always produces strong results if you hold long enough. Moreover, people have invested in real estate for centuries and continue to rely on it for wealth preservation.
- In general, people call property a “dead investment” because it demands patience.
- A minimum holding period of 5 years suits both residential and commercial property.
- A holding of 10 years almost always delivers handsome returns.
Pro Tip: Dealers, agents, builders, and even authorities often highlight short-term opportunities for their own benefit. Always prioritize your own goals instead of following their short-term promotions.
What is a File?
A file refers to property that has not yet gone through balloting.
- Even after balloting, the property may not exist on ground.
- Furthermore, even if it exists on ground, possession might not be granted.
- Without possession, no construction can start.
- Consequently, investors must treat such property as a “file” until possession arrives.
Tips:
- File prices rise or fall sharply with market demand.
- Most investors pay land cost over three years.
- Additionally, development charges often spread over the next three years.
- Therefore, a structured payment plan exists, but you must stay clear about your expected holding period.
What is a Plot?
A property becomes a plot only when the authority grants possession.
- With possession, construction can start immediately.
Tips:
- After ballot, dealers may sell a file with a number and call it a “plot.”
- Authorities may later change numbers due to technical adjustments or internal reasons.
- Therefore, treat it as a plot only when possession is officially granted.
- Plots with possession remain stable in market shifts.
- Plot files fluctuate more with market conditions.
What is a Society?
A society delivers organized urban planning and facilities for residents and businesses.
Basic Facilities
- Electricity
- Water
- Gas
- Sewerage
- Road Network
- Commercial Areas
Advanced Facilities
- Parks and Play Areas
- Schools and Hospitals
- Extras such as Clubs, Golf Courses, and Gated Security
Types of Societies in Lahore
- Authority-Run: LDA (Faisal Town, Johar Town, Avenue 1) and DHA
- Cooperative Bodies: Wapda Town, NFC, Model Town, UET
- Private Developers: Bahria Town, Urban Developers, Eden Builders
Tips:
- Since 1975, LDA has acted as Lahore’s master planner.
- DHA runs premium projects in cantonment areas.
- Cooperative bodies deliver affordable yet quality living.
- Private developers offer state-of-the-art, modern housing projects.
How to Verify a Society?
Before you invest, always confirm:
- Is the society registered with SECP or Cooperative Department?
- Did the society transfer land into its own name in the revenue record?
- Does the society hold a valid NOC from LDA, RUDA, CDA, GDA, MDA, or FDA?
- Are on-site utilities (electricity, water, gas, sewerage) available?
Tips:
- Never invest in pre-launch bookings.
- Wait for official booking announcements in newspapers.
- Ensure ads display location, payment schedule, and possession year.
- Always check authority warnings against unapproved societies.
- Compare approved/unapproved lists at the relevant authority office.
What is Balloting?
Balloting means the authority assigns plot numbers to allottees.
Types of Balloting
- Booking Ballot: Applicants submit forms for installments. Authority then announces successful and unsuccessful applicants.
- Plot Ballot: Authority assigns numbers against files and issues maps.
Tip: Many people misuse the word “ballot.” Always clarify:
- Is it a booking ballot or a plot ballot?
- When will the ballot take place?
Which Location is Best?
Most people call facing park, main boulevard, or corner plots the best. However, the best location always depends on your budget and family needs.
What is Short-Term & Long-Term Investment?
- Short Term: Delivery within 1–2 years
- Mid/Long Term: Delivery after 2+ years
Factors to Check:
- Prices rise for many reasons, but delivery defines real success.
- Occupancy matters as well—quick delivery with slow occupancy delays growth, while fast occupancy ensures steady appreciation.
Tip: Always demand official delivery timelines before investing.
What is Difference Between Allocation & Affidavit Files?
Affidavit Files
- Issued when landholders surrender land to DHA.
- DHA issues two 1 Kanal files per acre.
- Landholder sells with buyer’s name open, then DHA transfers.
- No CVT, Stamp Duty, or Advance Tax.
- Transfer completes in 3–4 days without both parties present.
Allocation Files
- Begin after affidavit conversion or direct allotment.
- Buyer pays CVT, Stamp Duty, Advance Tax, and DHA fee.
- Both seller and buyer appear for transfer.
- Transfer usually takes 7–10 days.
Tip: Affidavit files cost more due to lower transfer charges, but both are equally secure.
Also read: What is Difference Between Allocation & Affidavit Files?
When Will Ballot, Development, and Possession Happen?
- Agents share limited knowledge and rely on incomplete updates.
- Therefore, only authorities or developers can provide accurate timelines.
Tip: Always trust official announcements, not agent guesses.
How Much Holding Time Must Investors Plan?
- Minimum: 1 year
- Reasonable: 3 years
- Sufficient: 5 years
- Enough: 10 years
- More than Enough: 15 years
Growth Patterns:
- Mature projects grow slowly but remain stable.
- Underdeveloped projects grow fast but carry higher risk.
Tip: Always define your holding period before investing. Holders always win.
Which Investment is Better: Residential or Commercial?
- Commercial offers higher returns and rental income.
- Residential suits personal living needs.
Tip: Decide after analyzing local demand, family needs, and budget.
Which is Better: Cash Payment or Installments?
- Cash buyers enjoy flexibility and instant transfers.
- Installment buyers manage affordability but must hold until possession.
Tip: Never book if you cannot hold until possession. Premature selling often causes losses.
Do I Contact More Than One Agent?
Yes, always consult multiple agents.
Tip: Speak with at least 5 agents before buying or selling, and prefer those with offices in the society you are targeting.
What are Commission Charges?
- Traditionally, agents charged 2% from both buyer and seller.
- Today, many agree to 1% or negotiate.
- In rentals, half of one month’s rent is common.
What is the Price for a Plot in Lahore?
- Prices vary widely depending on location.
- For example, a 5 Marla plot may cost 2 lacs in outskirts but 70–80 lacs in prime areas.
Tip: Always decide your area first, then survey the market.
Where to Invest in Lahore?
Every area in Lahore offers opportunities, but the right location depends on your personal needs.
Checklist for Choosing Location:
- Children’s education
- Workplace/business access
- Proximity to family
- Personal preferences and lifestyle
For the latest DHA Lahore rates and guidance on which type suits your investment, join eProperty® WhatsApp Channel or contact Atif Iqbal – CEO eProperty® (21 years of trust).
